Hi,

My brother is an international student (F1 Visa), who came to US in July 2007.

I claimed him as dependent on Tax Returns for year 2007, as I paid his tuition and living expenses. (I live in CA, he goes to school in TX). He did not earn in 2007. He did not file form 8843 for year 2007. What are the consequences? Does he need to file it now.

For year 2008, he attended school for 1 semester, and worked fulltime rest of year under CPT. Does he need to file form 8843 for year 2008 and what type of 1040 should he file?

Your advice is really appreciated.

Thanks,
Sravanthi

On F1 visa your brother is exempt from residency for 5-years. You can not claim him dependent as a dependent must be citizen or resident of the U.S.

A F1 visa holder must file Form 8843 even if he does not file tax return. Form 8843 is for claiming exempt status for the year.
Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html)

I have clearly made a mistake by claiming him as dependent on tax return. Should I amend my 2007 tax returns.

Just to confirm my brother can file a 1040NR along with 8843 this year.

Thanks,
Sravanthi

Yes your brother should file nonresident tax return with Form 8843. His income is not subject to SS tax and Medicare tax.

You claimed your brother as dependent. You meet relationship test, support test and your brother did not earn $3400 in 2007. Also your brother meets residency test except that he has F1 visa. The tax laws are very complicated and involved. May be under some clause you may be able to claim your brother. But I do not know about this. You should still get opinion from AtlantaTaxExpert and IntlTax.

I agree with MukatA's comments above. You cannot claim your brother as a dependent because he was not a U.S. citizen or a U.S. resdient for the year.